2011-07-07-AC-min - Laserfiche WebLink

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2.FY 2011 3% Rule Transfers.Mr. Addelson presented to the committee for its approval a series ofyear-end transfers under the 3% rule. The 3% rule, enacted by the State legislature several years ago,allows cities and towns to balance their budgets administratively at year-end, by transferring appropriated but unexpended amounts of up to 3% of any line item to any other line item. These transfersrequire approval of both the Board of Selectmen and the Appropriation Committee. The transfers proposed for FY 2011, as detailed in aspreadsheetthat was circulated to the Committee, total $80,415, including:a transfer of $35,415to Long-Term Debt Principal from Long-Term Debt Interest ($25,000), Temporary Borrowing ($4,344) and Health Insurance ($6,001); a $20,000 Fire Department expense shortfall due to unanticipated apparatus repair costs coming from Health Insurance ($20,000); and a $25,000 Public Facilities Department expense shortfall due to higher than anticipated utility costs (natural gas at Clarke, electricity at LHS and water/sewer costs that were recalculated) coming from Health Insurance ($25,000). The Committee discussed the transfers, budgets and the reasonsbehind the shortfalls. There will be follow up with Pat Goddard after he has completed his utility overage analysis. The Committee voted to approve the proposed 3% transfers by a vote of 8-0. Reserve Fund Status. 3.Mr. Addelson reported that the end-of-year balance in the FY 2011 Reserve Fund is $480,000.It is anticipated that the FY2011snow and ice deficit of $652,000will be closed using availableFY12 revenue,including the $300k of unallocated revenuethat is set aside each year for this purpose and an additional $352,000 of the $600,000 of free cash that was set aside as a hedge against potential cuts in stateaid but which will not be needed (the cuts ended up being modest at $50k, and could be erased altogether in the event of a surplus in the state budget). Accordingly, it is expected that the full $480,000remaining in the Reserve Fund will close to the General Fund and contribute to the free cash available for appropriation in FY 2013. Thanks to Micah Niemy. 4.It was noted that this meeting would likely be the last attended by Micah Niemy, who will be leaving his post as Budget Officer in August to pursue a master’s degree in public administration. The Committee thanked Micahfor his hard work and contributions to the Town and wished him the best of luck in his future endeavors. 5.Miscellaneous. Eric Michelson reported that he and Dick Neumeier have setup a meeting later in July with Bill Hadley, Director of Public Works. This will be a preliminary meeting to better understand snow and ice processes and procedures. RobAddelson circulated a summary of Town and School legal expenditures from 2008-2011 (not including CPA legal expenditures or bondcounsel work) in response to a previous request by Committee members. There was further discussion of the possibility that savings could be achieved by hiring in-house counsel to take over some of this legal work. Mr. Addelson suggested involving the Board of Selectmen in determining whether this is a topic that should be pursued, and it was 2